The founder of crypto exchange Binance, Changpeng “CZ” Zhao, has been sentenced to four months in prison in the US after pleading guilty to violating anti-money laundering requirements.
Federal prosecutors had sought a three-year sentence, which is double the sentencing guidelines, while Zhao’s defense team argued for probation. He pleaded guilty in November as part of an agreement with the Department of Justice, Treasury Department, and CFTC, addressing allegations that Binance failed to maintain an adequate anti-money laundering program, operated without a licensed money-transmitting business, and violated sanctions law.
The world’s largest crypto exchange agreed to forfeit $2.5 billion to the government and pay a fine of $1.8 billion. Zhao admitted to violating the Bank Secrecy Act and causing a financial institution to do the same. In addition to his prison sentence, he agreed to pay a $50 million fine, resign as CEO, and be barred from any involvement in the operations of Binance, which he founded in 2017.
In a statement to the media, Binance expressed pride in the compliance, security, and transparency culture it has developed over recent years and stated its intent to continue building on that foundation as the company evolves.